I was happy to see a reply with some code that could have solved my issue, but this is actually what I have in my class.report.php.
However comment, line 99, may suggest a future update: "# TODO: Handle user => db timezone offset"
The lines that you point are used to sort and group by day, not for display.
My best guess, reading quickly the code would be:
line 119, $row_time = strtotime($row[1]);
line 130, $times[] = $time = $row_time;
reformat the date to store in array, but as it's stored as timestamp, I doubt that it'll work when it'll be used to effectively plot the graph.
If we find where this array is used to plot the graph:
line 139, return array("times" => $times, "plots" => $plots, "events" => $events);
maybe then we could hardcode a different way to display the date.
Best,
CMB